macroeconmics presentation lesson 1

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UN RANKS RP IN MIDDLE OFHUMAN DEVELOPMENT

Washington ± The good news is it¶s not toobad in the Philippines. The bad news is it¶snot too good too, either.

In fact, the country is right in the middle of the UN¶s human development index, whichranks 177 countries according to per capitaincome, human care, life expectancy,

educational levels and standards of living.

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In 84th place in the HD index, the Philippines

is also in the middle of the grouping of theAssociation of Southeast Asian Nation(ASEAN).

It is behind Singapore (in 25th place), Brunei(34), Malaysia (61), and Thailand (74) in theHDI ranking of the United NationsDevelopment Program, but ahead of Indonesia (108), Vietnam (109), Cambodia

(129), Myanmar (130), and Laos (133).

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The index published in November found thatpeople in Norway on average lead the best

lives in a comparison of life expectancy,literacy, income, education, and quality of lifeamong 177 countries.

Gross domestic product per person per year in Norway was $38,454, life expectancy was79.6 years, literacy was 99 percent and

enrollment was 100 percent.

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The top 10 countries in the index indescending order were Norway, Iceland,

Australia, Ireland, Sweden, Canada, Japan,United States, Switzerland, and Netherlands.

Niger, ranked in 177th place had a GDP of $779, life expectancy of 44.6 years, literacy of 28.7 percent, and enrollment of 21 percent.

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Variables of HDI

1. GDP ² Per Capita Income

2. Life Expectancy3. Educational Level4. Human Care

5. Standard of Living

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The Philippines had a GDPof $4,923, life expectancy of 69.91 years, and literacy of 

92.5 percent.

Source: Jose Katigbak: The Philippine Star Washington Bureau, January 5, 2007)

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WHAT ARE THE REALMEASURES OF

DEVELOPMENT?

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MACROECONOMICS- The part of economics concernedwith the economy as a whole, with

such major aggregates as thehousehold, business, andgovernmental sectors and with totals

for the economy.

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ECONOMIC GOALS1. ECONOMIC GROWTH

2. FULL EMPLOYMENT

3. ECONOMIC EFFICIENCY

4. PRICE LEVEL STABILITY5. ECONOMIC FREEDOM

6. AN EQUITABLE DISTRIBUTION OFWEALTH

7. ECONOMIC SECURITY

8. BALANCE OF TRADE

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Government

BusinessmanWorkers/Laborers

Economy

Explain the Model

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Businessman

Workers/Laborers

Government

Economy

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FIRMS

HOUSEHOLDS

Input Market Output Market

Factors of Production

Land, Labor, Capital

Entrepreneur  Goods and Services

Consumption

Circular Flow of a Very Simple Economy

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FIRMS

HOUSEHOLDS

Input Market Output Market

Factors of Production

Land, Labor, Capital

Entrepreneur  Goods and Services

Consumption

Circular Flow of a Simple Economy

Rent, Wages

Interest, Profit

Income

Expenditures

Income

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FIRMS

HOUSEHOLDS

Input Market Output Market

Factors of Production

Land, Labor, Capital

Entrepreneur 

Goods and Services

Consumption

Rent, Wages

Interest, Profit

Income

Expenditures

Income

Financial Institutions

SAVINGS

INVESTMENTCircular Flow of Economy with Savings & Investment

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FIRMS

HOUSEHOLDS

Input Market Output Market

Factors of Production

Land, Labor, Capital

Entrepreneur  Goods and Services

Consumption

Circular Flow of Economy with Government Sector 

Rent, Wages

Interest, Profit

IncomeExpenditures

Income

GOVERNMENT

Subsidy

Tax

Tax

Services

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1

HOUSEHOLDS

Input Market 2

Factors of Production

4-7 Goods and Services

8

Rent, WagesInterest, Profit

3

Expenditures

9

12

Subsidy13

Tax14

Financial Institutions

10

11

International Trade

15 Import

Circular Flow with International Relation

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16-18. Examples of Financial Institution

19-20. Examples of services given by thegovernment